IMC earnings lowered, industry hurts

Lake Forest-based IMC Global Inc. said Wednesday that its fourth-quarter earnings per share will be lower than expected, coming in at half of the 24 cents reported in the year-earlier period.

A First Call/Thompson Financial survey of five analysts produced a fourth-quarter earnings estimate of 20 cents a share. The producer of agricultural phosphates and fertilizers expects to release its earnings report Jan. 31.

The company also announced plans to close, indefinitely, all three of its fertilizer-making plants in Louisiana. Company officials blamed a lack of demand for their products, and said there will be layoffs associated with the plant closures.

An analyst noted that IMC's competitors, including Minneapolis-based Cargill Inc., also are suffering.

"It's pretty grim in the near term," said Robert Koort, an analyst with Deutsche Banc Alex. Brownin New York. He noted that as the largest American producer of phosphates, IMC often acts as a regulator, and that other companies may follow IMC's lead by slowing production and lowering earnings reports.

But he noted that the industry is subject to sharp declines and gains, and that IMC has benefited previously from its practice of aggressively curtailing production when times are tough, then returning to normal when business improves. In another year or two, "they're probably going to be making some pretty impressive profits," Mr. Koort said.